If the Supply and Demand Curves for a Product Both

question 209

Multiple Choice

If the supply and demand curves for a product both decrease, then equilibrium

• A) quantity must fall and equilibrium price must rise.
• B) price must fall, but equilibrium quantity may rise, fall, or remain unchanged.
• C) quantity must decline, but equilibrium price may rise, fall, or remain unchanged.
• D) quantity and equilibrium price must both decline.

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Definitions:

Point Estimate

Single value used to estimate an unknown population parameter.

Population Parameter

A numerical value that represents a characteristic of an entire population, such as its mean or standard deviation.

Standard Error

The standard deviation of the sampling distribution of a statistic, most commonly the mean; it is used to estimate the accuracy of a sample mean compared to the population mean.

Confidence Interval

A range of values, derived from sample statistics, that is believed to contain the true value of a population parameter with a certain level of confidence.